Hey {{first_name | Mixtape Reader}},
Let's talk about the number that quietly wrecks most retirement plans.
It's not your mortgage. Not your car payment. Not even your credit card debt.
It's healthcare.
🎵 Track 4: What Rising Healthcare Costs Mean for Your Retirement Math
Here's a number worth sitting with: the average couple retiring today at 65 will spend approximately $315,000 on healthcare costs over the course of their retirement. That's out-of-pocket expenses after Medicare. That number has been climbing every year.
For Gen X, the math gets harder. Most of us won't hit 65 until the mid-2030s at the earliest. Which means we're looking at a target that keeps moving.
Why Gen X is especially exposed:
Most retirement calculators ask you to estimate your annual spending in retirement. Most people plug in something close to their current spending, maybe minus the mortgage if they expect to pay it off. Very few people line-item healthcare at the level it deserves.
Here's what that mistake looks like in practice: You plan for $60,000 a year in retirement expenses. You don't account for a $500/month Medicare supplement premium, rising prescription costs, dental work that Medicare doesn't cover, and the real possibility of a long-term care need in your 80s. Suddenly $60,000 doesn't cover $60,000 worth of life.
The three numbers to know:
Medicare Part B premium (2026): $185/month per person, deducted from Social Security. For a couple, that's $4,440 a year before you've paid for a single prescription.
Medicare doesn't cover everything. No dental. No vision. No hearing. No long-term care. These are separate costs that catch retirees off guard every single year.
The bridge gap. If you retire before 65, you're on your own for health insurance until Medicare kicks in. A 62-year-old buying coverage on the marketplace can easily pay $800-$1,200/month depending on the plan and the state. That's $10,000-$14,000 a year just to stay covered during the gap years.
The move this week:
Pull up your retirement projection, whether it's in a 401k calculator, a spreadsheet, or your advisor's model. Find the line for healthcare expenses. If it's blank, or if it's a round number that doesn't account for Medicare premiums, supplemental coverage, and a long-term care contingency, update it.
A realistic healthcare budget for a couple in retirement starts at $600-$800/month for premiums alone, before any actual medical spending. Build from there.
Uncomfortable? Yes. Necessary? Absolutely.
We're the generation that watched our parents get blindsided by this. We don't have to be.
See you Wednesday for a tool that helps close this gap in a genuinely smart way.
The Mixtape Millionaire Team
Mixtape Millionaire is for informational purposes only and does not constitute financial advice. Always consult a qualified financial professional.